Legal problems can involve a wide range of issues, and especially in the business realm. You may be forced to confront a breach of contract regarding a construction project, complications with one of your oldest business partnerships, a real estate deal gone awry, or any other problem that requires the legal system in reaching a resolution. Business disputes and litigation can lead to enormous stress, and unless you have a legal degree you probably aren’t all that comfortable knowing a court date looms and you will be spending time facing your adversary in front of a judge. Not only that, you may have quite a wait to get the whole process over with as court calendars are often congested—and finding resolution may be further prolonged if your court date must be rescheduled or continued.
Because both litigation and the courtroom atmosphere can be somewhat formal and intimidating, many individuals today are relieved to find that alternative dispute resolution is an option. In California, three different types of ADR are available:
- Judicial reference – a type of ADR available to Californians, judicial reference hearings are still part of the court system. A referee (often a lawyer, retired judge, or other type of professional bringing relevant experience, such as an accountant) is usually chosen by the parties involved; however, if they cannot decide together, the court makes a choice based on nominees supplied by each side. Once the process is underway, evidence and discovery are allowed just as in the courtroom, but there is no chance for a jury trial. Judicial reference is public, and the referee’s decision is considered a court ruling—but it can be appealed. Scheduling is flexible, the atmosphere is less rigid, and the case is usually resolved much faster.
- Mediation – a popular alternative to litigation throughout the US, mediation allows for the parties involved to reach a decision with the help of the mediator—a neutral party that educates everyone involved about how the process works and then guides them in resolving the dispute. Mediators are trained to ensure that all parties are heard and understood during the private and more casual process, and to offer a fresh perspective when discussions may be stalling. Once both parties have signed off on a decision and settlement, the process is considered binding. Mediations are often encouraged by the courts, and sometimes required.
- Arbitration – while arbitration offers many benefits over litigation, the laws involved can still be quite complex. Scheduling is more flexible for the parties involved, along with greater speed in finding resolution—however, while the process is usually significantly less than litigation, arbitration can still be somewhat costly. The arbitrator (often a lawyer, but not always) is to be chosen by the parties involved, and sometimes a panel of several may be required. If the parties cannot decide on an arbitrator, the court will choose one or more instead. While testimony and evidence are permitted, the process is much more streamlined and simple. The arbitration process is private, and usually considered binding.
Attorney Shane Coons is highly skilled in all methods of ADR, to include mediation, arbitration, and California’s judicial reference system. If you have a legal issue and want to learn more about the best alternative dispute resolution process for your case, please call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.